Hotel Insurance Claims: What to Do When Your Guests Go Wild

As a hotel owner, you have most likely invested substantially in your property. Therefore, you must insure your investment.

What do you do when one of your guests checks out, and your employees inform you that they caused significant damage during their stay? Do you bill the cost of damage to the guest's credit card? Do you demand compensation from them? Or do you call your insurer first to find out the right procedure for pursuing hotel insurance claims? If you carry certain types of hotel insurance, the most prudent move is to first consider your options with a claims handler.

Types of Hotel Insurance

Since you don’t know the scale of damage the guests might cause, you should take preventive measures by carrying adequate hotel insurance coverage. Here are three types of hotel insurance that can cover damages wrought by unruly guests:

1. Business Property Insurance - It covers the cost of repairing your property if a guest causes damage. It can cover losses, like destroyed mattresses and broken televisions.  For instance, if a guest’s lit cigarette sets a room on fire, your business property insurance can compensate you for the damage. This policy can cover your buildings and property within or outside your buildings.
2. Business Liability Insurance – It provides coverage if third parties’ property is damaged or if third parties get bodily injuries while on your property, and you're held liable. This is a critical coverage because you have guests coming in and leaving your buildings, interacting with your staff, sleeping in your rooms, and working out in your gym.
3. Business Personal Property Insurance – It reimburses your losses if your hotel property gets vandalized or stolen. For instance, if a guest steals an expensive piece of art, your business personal property coverage can cover the losses.

Practical Tips to Keep Your Hotel Safe

As a hotel operator, you’re responsible for providing safe accommodations and great customer service. You shouldn’t let reckless guests cause damage to your property, expose you to liabilities, and ruin your reputation. Here is how you can keep your hotel safe:

• Prioritize Security - Every time guests come for a room key, your staff should check their ID. Besides, during off-hours, you should have security personnel at the entrances to welcome guests and turn away anyone who isn’t staying there. Moreover, you should authenticate the identities of all vendors who enter your premises. Your employees should always keep an eye on security-related issues.
• Engage with All Guests - Your staff should maintain friendly and courteous relationships with all guests to prevent conflict. This way, you can identify problems that need to be addressed before they escalate.
• Monitor Your Hotel - You should monitor the activities on your premises by continually checking your CCTV cameras’ footage.

How John E. Peakes Insurance Agency Can Help

Each property has different features that make its insurance needs unique. For instance, some hotels have gyms, golf courses, and swimming pools, and some don’t. Some hotels are barebones operations that only offer the basics, while others feature lavish amenities. Some only have one property, while others have multiple properties across many states. These factors influence the kind of hotel insurance each property needs.

At John E. Peakes Insurance Agency, we will help you get the right insurance for your property. Contact us today to get started on your customized hotel insurance policy.